>> greg: you can't arrest yourself. >> bob: i congratulate the obama administration. >> kimberly: down to five seconds. thank you for watching. see you tomorrow. ♪ >> bret: a bipartisan plan for immigration reform. is this the one thing washington can come together on? politics and the policy. this is "special report." ♪ ♪ >> bret: good evening. i'm bret baier. almost everyone in washington agrees the immigration system is broken. and needs fixing. but forget the small print. no one could even agree on the major points. now, that may be changing. chief political correspondent carl cameron tells us about a proposal that might actually have a chance. >> day before the president unveils the immigration reform plan in las vegas, bipartisan

group of senators laid down the framework on the controversial issue. >> we do not want immigration as a wedge issue. much rather we want a bipartisan bill that solves the problems and becomes law. >> four democrats joined four republicans including arizona senator john mccain, top g.o.p. advocate for immigration reform for years. influential freshman senator florida of cuban descent. >> i live surrounded by immigrants. my neighbors are immigrants. family are immigrants. married immigrant. i realize how critical immigration system works is for the hair tage and the future. >> the republican party is losing the support of the hispanic citizens. we realize that there are many issues in which we think we are in agreement with the hispanic citizens. but this is a pre-eminent issue with the citizens.

>> this contingent first on verifiably securing the border, reducing the visa overstays,er-verify system and ban on illegal ail yeps receiving federal assistance including obamacare. the plan includes guest worker program for lower skilled jobs and green card for immigrants with advanced degrees. harry reid jumped aboard. >> i lo do everything in my power to get a bill across the finish line. >> they would have to pass the background check, pay fine and taxes and stay legally while applying for green card and eventualual citizenship. the latest fox news poll show 55% favor citizenship. 13% support guest worker program but only limited time. >> immediately when the bill passes people in the shadows would get a legal right to

stay here and work. they would no longer be supported provided they don't have a criminal record. >> president obama was chastised for not pushing immigration reform in the first term. there is growing support now but it won't be easy. the lawmakers love to say the devil's in the details. a debate and discussion is now beginning. >> bret: much more with the panel. bump in the road on wall street. dow was down 14 after six straight winning sessions. the s&p 500 was off three. nasdaq gained five. durable goods orders were up 4.6% in december. >> led by surge in military aircraft sales. what does this mean for you? wendell goler. >> the dow jones/industrials closing in on the prerecession high of 14,164 set in october of 2007, the standard & poor's

index passed its high point. the stock market recovered from the worst recession since the great depression. unemployment still 7.8%, few would say the same for middle america. critics argue the president recovery effort with $1 trillion in stimulus spending and hundreds of millions in bail-out may have saved wall street but not the same for main street. >> wall street bonuses continue to be large. a lot of profits made is there. most folks the wages are declining and if they have investment and so forth, over the last 13 years they haven't made any progress at all. the white house says keeping the financial industry afloat was part of rescuing the overall economy. >> the president does not believe anything we do in washington is worthwhile if it doesn't have as part of the purpose strengthening our economy. providing more security for our middle class.

>> the aides said it would have been worse without the president's program including legislation aimed to prevent future bail-out of institutions deemed too big to fail. not all agree how effective it will be. >> peter moresi believes the big investment houses are thriving but the average investor is not. >> if they buy a mutual fund they have a high probability of not keeping up with the market. if they buy the s&p index which is the market, it doesn't make progress. >> the white house says it's not fault of the recovery plan. the stimulus bill contain more tax cuts and less spending than the president's advisors wanted. jay carney says the compromise was the best they could get. >> the idea that we would have somehow garnered more support in congress for something different, is a misreading of history. >> most people agree uncertainty is holding back economic growth, congress agreed to extent the debt ceiling until may. still needs agreement to avoid

across the board spending cuts. >> peter marisi says bun thing holding tobacco guard growth is nature of investment. relatively few people flipping stocks in a way that doesn't send capital where it needs to go to grow the economy. >> bret: wendell goler, thank you. several democratic politicians trying to put a squeeze on gun manufacturerrers. correspondent shannon bream tells us this time gun control advocates are trying to pull a trigger on a different approach. >> as the police chief and sheriffs from around the country gathered at the white house to meet with president obama and discuss gun violence he put the onus on capitol hill. >> as we indicateed before, the only way we will be able to do everything that needs to be done is with the cooperation of congress. >> growing independent case it won't be easy sledding on the hill, number of obama allies across the country rolling out plans to go after the gun manufacturers and the financial backers. officials in california, illinois, new york, and

pennsylvania publicly called on various employee pension funds to divest any holdings linked to the gun industry. >> the city of los angeles funds should not go to profit companies that produce weapons, design maximize carnage and death. >> chicago mayor and former white house chief of staff rahm emanuel went a step further to send letters to prominent banks maintaining multi-million lines of credit for smith and wessonment "i ask you to use your influence to push the companies. collectively we can send a clear and unambiguous message to the gun industry investors will no longer financially support companies that profit from gun violence." >> it's sort over classic rahm emanuel chicago politics to try to bully and pressure our industry to agreeing with the proposal being advanced by antigun mayors like chicago. >> supporters are urging the administration to act in other ways as well. from idea like creating a justice department task force

to track gun sales and call on environmental protection agency to regulate manufacturer and sale of ammunition that contains lead. father of one of the children killed in newtown said today he is worried that a push for new measurings will do it will to solve underlying problem of violence. >> i'm a big proopponent of individual accountability and enforcement. if there are going to be laws we should enforce them. >> the state agency is spearheading the fight to toughen gun laws. find out if they plan to support the proposal and report back. >> bret: thank you. state crews are looking for pilot of plane that may have gone down off the coast of italy tonight believed on a training mission.

we will get reaction to a big change that may be coming to a boy scout troop near you. plus, brit hume on the president's cozy media interviews. and his attack on fox news.

>> bret: be prepared for change boy scouts. the long-held policy of excluding gays may soon be modified. jim angle is here to tell us about scouting about new future. >> the national boy scouts said they are considering removing the restrictions on sexual orientation for scouts and scout leaders, a significant change for the organization. statement from the group says, "this would mean there would no longer be any national policy regarding sexual

orientation and the chartered organization that oversee and deliver scouting would accept membership and select leaders consistent with each organization's mission, principles or religious beliefs." so a decision by the national board, which takes up the matter february 4 could eliminate the restriction that now prevents the boy scout rules call open or avowed homosexuals from participating as scout or scout leaders. the local sponsors, churches and synagogues would have the right to make their own decisions about their scout troops. >> whatever entity controls the troop will decide whether or not they will allow gay scouts and gay leaders. >> the conservative family research council accused them of bowing to some-arm tactics of activists saying if the board capitulates to the bulling of the activist, boy scout legacy of producing great leaders will become

another casualty of moral compromise. >> they said there are background checks and they require two leaders be present at all time and the new action would drop the current restriction and leave the local restrictions in control of what they decide to do. bret? >> bret: jim, thanks. >> president obama is going public with criticism of the conservative media, including opinions. sometimes heard on this channel. some say he is getting pass from main stream media. witness last night on "60 minutes." >> how would you characterize your relationship right now? >> i consider hillary a strong friend. >> very warm, close. there is a sense of understanding that sometimes

doesn't stake words, because we have similar views and similar experiences that i think provide a bond that may seem unlikely to some but has been at the core of the relationship in the last four years. >> bret: senior political analyst brit hume has analysis of this. >> you didn't hear it on "60 minutes" but president obama like many a president before him is unhappy with the press. in a separate interview with the "new republic" he grumbled and fox news and rush limbaugh. nothing unexpects there. but he complained that the reporters generally in an effort to be impartial street democrats and republicans like equivalent. they foil to note one side trying to do what is right. never mind that the president at that moment was interviewed

by one of his campaign donors apt supporters now the owner of the new republic. or he got a press to do an interview. i missed the interview with president bush and colin powell or condoleezza rice. well, you say, mr. bush would never offer one. that may be true. he would haven't gotten that treatment from the press. >> bret: this is a secretary of state leaving but president entering the second term. didn't you expect bun series of tough questions? >> the last time they interviewed the president controversy arisen whether the attack was terrorism or not and what the president said about it.

he said he didn't know if it's terrorism or not. so there was a piece of information that they left out of the version they aired and turned up much later. that was embarrassing. >> bret: the tape didn't come out for months later. >> long time the thing you look at and say what were they thinking? supports they're soft on the guy. >> bret: all right, thanks. what to you think with the latest interview with the president? let me know on twitter. follow me @brettbaier. president obama is late with a legally mandated report about the stimulus. year-and-a-half late. later in the grapevine. up next, more fighting but not much talking in egypt.

>> bret: a fox news alert. u.s. -yemeni operation off the coast of yemen. coast guard with the assistance of the u.s. navy there, intercepting a ship in territorial waters close to the arabian sea. boarding a vessel finding a large cache of illegal arms. including the service to air missiles, used to shoot down civilian and military aircraf aircraft. c-4 military grade explosion is. shells.

i.e.d.s. it sounds like the vessel was packed with explosion evs and flew multiple flags and had eight yemeni crew members. said to be a big get for the u.s. and yemeni officials. just off the coast of yemen. just coming in as we speak. weapons shipment found off the coast of yemen. there have been multiple operations to try to stop the terrorist element in that area. multiple operation to go after terrorists inside yesmember now. a big stop in the waters there. a fifth straight day of violence in egypt. dozens have been killed. state of emergency has been declared. out of abundance of caution, american diplomats now shutting their doors and pulling out personnel. correspondent connor powell is monitoring the situation where jerusalem tonight. >> tear gas filled the street of cairo today, as the riots

continue to watch egypt. widespread clashes between protesters and police intensified after a court ruling sentencing 21 egyptians to death for their part in a soccer riot one year ago. the worsening violence forced the u.s. embassy in cairo to close today. in an effort to calm the situation, egyptian president mohammed morsi declared marshall law in three cities. angering supporters and opponents alike. >> "he came out, mohammed morsi, and instead of condemning the bloodshed, he had emergency -- [ inaudible ] that the muslim brotherhood were fighting again." >> in a tv address sunday night, morsi defended temporary emergency law. which is eerily similar to the one imposed on the egyptians during the three tect rule. former strong man hosni mubarak. >> to end the bloodshed, to have security against vandals. and for the perception of citizens, i have decided after

referring to the constitution to announce imposing of the state of emergency. >> stagnant economy in a divided political environment, egyptians are frustrated with the slow pace of reforms. increasing theyly complain morsi and the ruling muslim brotherhood party halftimeed thhijackedrevolution and are img islamic dictatorship. >> morsi called on the opposition to engage in national dialogue. the offer was quickly rejected leave nothing clear route to ending the turmoil. bret? >> bret: connor, thank you. police in brazil made three arrests and reportedly detained a fourth person in connection with sunday morning nightclub fire. police say a banned pyrotechnic show started the fire. it's believe two members of the band and two of the club's owners are in custody. the white house is condemning what it calls iran violation of the universal freedom of

religion. american pastor saeed abadini was reportedly convicted of trying to undermined security creating a network of christian churches in private homes and has been sentenced to eight years in prison. what was originally designed to be so extreme it could not become a reality is getting closer to becoming a reality. some republicans say the package of spending cuts known as the "sequester" is going to happen. national security correspondent jennifer griffin on what it would mean. >> two years ago when congress began talking about sequestration, the prospect of half a trillion dollars in defense cuts seemed ludicrous. defense secretary leon panetta told the pentagon not the plan for it. now it seems not only is the military planning for the cuts, republicans seem to think the cuts are inevitable. >> i think the sequester is going to happen. because that $1.2 trillion in spending cuts we can't lose the spending cuts. that would pay for the last debt ceiling increase. >> the looming deadline is

march 1. deputy defense secretary ash carter warned friday that the pentagon's $800,000 civilian employees will face furloughs. and reduce paychecks starting in april, if sequestration is not avoided. pentagon is now planning to eliminate 46,000 temporary civilian workers as a result of these imminent budget cuts. >> i got a perfect storm coming up in the next few months. we have this whole crazy mechanism called sequester. that means $1 trillion will be cut across the board. $500 billion out of defense. across the board. >> in a meat ax approach that will hollow out the force if it happens. >> one of the nation's largest defense contractors general dynamics based in false church virginia reported $2 billion in losses. blaming the upcoming defense cuts. the aerospace industry association estimates that $450,000 jobs will be lost in virginia, maryland and washington, d.c. if dequest

ration cuts take place in march, which could be devastating to the local economy. >> we are talking about something to knock three-quart ore after point off the gdp. we are talking about 2 million american jobs at risk. >> one example, the pentagon plans to spend $5 billion less on the "it" contracts next year. washington, d.c. and the suburb benefit from the contract spillover. 5% unemployment rate is 3% lower than the national average. perhaps the only way to get capitol hill to halt sequestration is when the effects are felt in lawmakers' own backyard. >> bret: jennifer griffin, live at the pentagon. thank you. the u.s. military is hoping to put a base for unarmed drones in the african nation of niger. u.s. and niger signed status enforcement agreement today. the base is in the planning stage but not approved by pentagon, the white house or niger. chicago educators learne learnee

hard way. be absolutely sure about the length you send in e-mail to parents. plus, the tale of two marches and how they were covered or not covered in the media. the grapevine is next.

>> bret: fox news alert. senate passed $51 billion relief bill for victims of super storm sandy. the measure passed the house two weeks ago. critics were unhappy there were no off-setting spending

cuts. supporters have been pushing relief bill for weeks. the final bill vote 62-36. now -- ♪ ♪ >> bret: after that music, fresh pickings from the political grapevine. zero. that is the amount of time given to coverage of the hundreds of thousands strong marm for life. marking the 40th anniversary of the roe v. wade decision by cbs and abc evening news show friday. stories that did make the cut, hillary clinton's glasses. and the subway foot-long sub that is only 11 inches long. however, both networks did cover the other march in d.c., the pro-gun control event saturday which cbs said numbered close to 1,000 people. that prompted one religious organization to tweet, "the march for gun control was paltry compared to marm for life, but the media coverage was big versus small. the bias is palpable.

>> an article tieing the march for life to increased call for gun control. president obama signed the stimulus in law in 2009 it mandated that they release quarterly report on where the money is going and the monthly standard says the last was released in june 2011 where it stated one job was created or saved for every $317,000 spent. the fifth bad report in a row. since then, the president missed the last six quarterly reports. we reached out to the white house and still awaiting a response. typos are embarrassing. especially in a mass e-mail. the chicago public school system really sent out a

doozie. there is a report of a link sent to e-mail of all parents that supposed to sent them to board of education website was link to erotic web site. corrected e-mail was sent out two hours later with an apology for any inconvenience. well, it has been inconvenient month for labor unions. statistics show huge losses in membership and last week, a federal court ruled against president obama's recess appointments to the national labor of relations board. chief washington correspondent james rosen on labor in tough times for unions. >> we are going to stand up for america. >> fewer are standing up for organized labor. bureau of statistics said the union lost 400,000 members, decline of nearly 3%. it's the fifth year in a row that labor ranks sloping. the trend partly reflects the long-term memraging of the manufacturing jobs it isn't

because of slump in motown. >> you only have to look to michigan to see how unions helped build stronger middle class and america. >> half of last year's dropoff occurred in the public sector unions. formerly one of organized labor bright spot. >> that is directly correlated to the job loss that we have seen in public sector. >> battle over collective bargaining rights in wisconsin and tough times for the local budgets play important roles. >> with the decline of union make it difficult for middle class. >> conservatives see the union as drag on free market won a round when the appellate court ruled president obama's recess awe pointment to the national relation board was unconstitutional. historians of the labor

movement say leaders need to adapt to changing demographic reality. >> in some places they are concentrating on those notoriously hard to organize sectors and retail and fast food. and a state like california you can see from the organized labor is a bright spot. the numbers grew by 100,000 this past year. driven in large part by immigrant workers. >> california is one of seven states home to fully half of all union members. all seven states voted for barack obama in 2008 and last november. bret? >> bret: james, thank you. is this finally the immigration bill to make everyone happy or at least satisfied? or is this false optimism early? we'll ask fox all-stars when we come back.

this is a positive first step. but the truth is the congressional leadership will be to pass a comprehensive bill. senator from nevada, for years witnessed firsthand the difficulties are broken that presents from immigrants and the families. it's important to me personally we finally resolve the issue. i will do everything in my power as the majority leader to get a bill across the finish line. >> we have an obligation and the need to address the reality of the situation we face. adress in a way fair to the people that are doing it right way. and in essence, the hundreds of people that come to our offices every year whose relatives from all around latin america and the world are waiting in line to legally come here. we have to be fair to them. >> bret: the day before they lay out the plan. four democrats and four republicans, laying out the framework for comprehensive immigration reform. they are essentially saying you to have verify the board.

remove the visa overstays ander-verify to prevent undocumented workers and make sure that they receive no federal assistance like obamacare and healthcare. path to citizenship, once you get over those hurdles here are what people have to have. register and pass background checks, pay a fine and back taxes, earn probationary legal status. you can be here, but you are probationary. learn english. continue to pay taxes. show u.s. work history. get a green card and then apply for citizenship. the back of the line. jonah goldberg, mara liasson, political correspondent, national public radio and syndicated columnist charles krauthammer. charles? >> a large number of americans have a view that i advocated if you do legalization after the enforcement of the border americans would accept that. that is what the bill here or

proposal here appears to do. once you get enforcement, you have to go through a path to get a green card citizenship. that is highly misleading. under the proposal, the day the bill is filed you get instant citizennization for 11 million illegals immigrants. if there is trouble with enforcement of the border you not going to get the government revoking legalization after people come out of the shadows, given information to the government including where they are domicile is. say oh, we are going to revoke your status and lose your job you have to left. we get functionm equivalent of a green card. yes, you have to wait to get the breen card. that is why you have this in reverse order. the insensitive for real

enforcement is gone. this is what happened with reagan who believed in this enforcement and legalization. he signed amnesty. in late 1980s. it turned out amnesty was achieved. no enforcement. we now have 11 million new illegal immigrants. reagan said one of the biggest mission takes of his presidency. >> bret: the politics has changed, obviously. fox news poll asked the question about government policy toward illegal immigrants should be pathway to citizenship. 66%. there were hurdles that you had to get through. much like this bill. mara, the demographics are changing. >> the tem graphics are changing. everybody was unbelievably candid about this. i asked why now? why does vit a good chance of passage? john mccain and schumer and everybody. because of the election. when the republicans lose 3 to 1 with hispanic voters who are only going to be a larger share of the electorate they have to do something

different. they decide to drop the opposition to what used to be called amnesty. now john mccain and marco rubio say we have de facto amnesty now. we want to get people legal and do in a fair way to people waiting in line. there is not a line for people who have no family in the united states. you can't get in at all legally unless you have, unless you are a chain immigrant. i think politics are actually pretty good. i think it will be hard. opposition in the house. there are details that are unclear. how do you verify a border is secure? >> bret: commission that is nebulous. >> yes, but there are republicans and democrats working together on this. senate has excellent chance. >> instant legalization is not a detail. >> true. >> to use the phrase get the

back of the line. there are two lines. line for immigrant legally in the united states. line for green card to become a citizen. instant legalization that charles refers to puts them at the head of one of the lines. back at the other at the back of green card line. it is cutting to head of the line. a problem. >> bret: show you a few other lines. democrats. percentage of the democrats, voting. voter who are. if you look at the chart here. look at that. nonwhite, 56/44%. look at republicans, next graph, the two lines. they are just looking at it. are pop ticks and -- the politics and policy are converging here in an may

amazing lagerhead way. >> i agree the republican party needs to reach out to hispanics and mynarity a change the narrative. that is self-help, come here, start yourself entrepreneurialism should be the republican message and we are on the wrong side of it. that is true. but the same time, this sort of comprehensive approach that tries to do everything invariably becomes a governmentcentric of doing things. truly john mccain still bill. if government isn't the solution, there is no solution. the best immigration policy is have one. we have none. there are better ways to go. >> bret: absent the big bill you don't have a bill. >> in principle you could work out small chunks of this enforcement. after a year or two, when you

do that, you get people who realize that the river has become a trickle of illegal immigrants. then you could propose instant amnesty right away. ways of approaching this. the democrats are in control. the democrats never showed great interest then forcement as we saw when reagan signed his amnesty. the only question i have is if we do this, which i think ultimately is humane legalization, and america is a generous country, will we have another co hort of 10 million illegals in ten and 15 years? if we do, this will be an abject failure. the way it's structured it looks as if we will. >> bret: next up, the president throws high heat on fox news and rush limbaugh and gets softballs from "60 minutes."

this is not an interview i ever expected to be doing. but i understand, mr. president, this was your idea. why did you want to do it together? >> i want to have a chance to publicly say thank you. i think hillary will go down as one of the finest secretary of states we have had. >> okay. part of the "60 minutes" interview there. we were going to show you some of the tough questions. [ laughter ] we couldn't find that tape. the other interview that got attention was new republic. president obama talking to the new republic. a quote. one of the biggest factors will be how the media shapes debates. if a republican member of congress is not punished on

fox news or by rush limbaugh for working with a democrat on a bill of common interest, then you will see more of them doing it. the same dynamic happens on the democratic side. the difference is just that the more left-leaning media outlets recognize compromise is not a dirty word. your thoughts? >> starting with the "60 minutes" interview. grotesque embarrassment for cbs news. this is the thing, this is the "people" magazine of "60 minutes," historically that the program that politicians were most scared of. inconceivable that the journalists at fox if they had gotten an interview with george w. bush or condoleezza rice, or colin powell would have gone nearly, remotely same zip code as soft as "60 minutes" tid. the new republic had more of an excuse.

flagship liberal publication but funny the editor of the new republic, chris hughes, dot-com millionaire. donor that used for obama and says in the letter to readers in same issue with the interview, he says how they will have no partisan bias. they are not going to push a party line, not going to be biased toward a group or party. yet, this thing was basically dictation from the president of the united states. >> bret: mara? >> i think that, you know, chris hughes has to prove that. right out of the gate he did an interview with the president and he is a big donor and employee. it seemed weird. full of conflict. the steve croft interview was interesting when you hear him asking the question, why did you want to do this? almost like a bubble over his head why did i agree to do this? it was kind of tough piece exit interview pat on the head for hillary. he played along from what we can tell. >> bret: exit interviews are one thing. at the end of two terms, looking back over two terms.

one of those things. and you ask questions, reflective. the president tarting a second term in the middle of controversy. the secretary of state just come off controversial testimony on capitol hill. there are hot spots all over the world. few questions to ask that probably could be more pointed. >> when you think of all the things, yes, all the ground that wasn't covered, whether it was syria or benghazi or for that matter budget battle. we haven't heard them stay anything about that. dieing to hear what he has to say. i gas he is having a second honeymoon. >> i love to hear the president whine of fox news and talk radio. we should be proud we annoy him so much. if you look at the line-up on one side, the liberal media you start with abc, nbc, cbs, cnn, pbs, msnbc, elite

newspapers and one remaining news magazine. it doesn't stop anywhere. on the other side, talk radio, fox news. they can't stand the fact that they no longer have a monopol monopoly. it ought to be taken as a compliment. what i said about rupert murdock the genius is understanding and locating a niche audience in broadcast cable news. which is half the american people. half that suffered for decades by the fact you get news presented from a single perspective over and over again. finally, the fact that there is a new perspective, talk radio and fox, and they can't stand it. source of pride. >> do you -- [ inaudible ] "60 minutes"? >> probably not. softy. if you are the official paper in egypt and had interview

like this with the president you would be embarrassed. >> you have corporate executives that look at the land scape of the american television and the response is what we need is network to the left of msnbc. so a gore created daunt is now al-jazeera. there is a really other worldly view of mainstream media. >> bret: that is it for the panel. stay tuned to see a true tests of trust.

>> bret: finally tonight, trust is an important component, of course, in life, in business, it's the foundation of relationships. but here is an example of when you should maybe rethink relying completely on others or at least try explaining things fully first. >> close your eyes and just slow down, okay? >> lauren is going to catch you. >> okay. it's called the trust